Startup Advisors Pay: You often overestimate the equity cost of advisors!

Its often much more affordable than you think.

And advisors can be transformative for startups.

The right person will bring:

• a wealth of experience in the industry
• connections to customers and partners
• guidance in building the company

There’s, however, a common myth: “Advisors are equity-expensive.”

This is not necessarily true.

The data below comes from Carta. It's from 2023, but 2024 numbers are similar.

Insights on pre-seed advisory equity: → The median equity grant is 0.23% → The average number of advisors is 2.7 → 75% of all advisor grants are below 0.5%

This is way lower of what most founders imagine.

The right advisors can be a game-changer. BUT They shouldn’t break the cap-table.

Author

AiUTOMATING PEOPLE, ABN ASIA was founded by people with deep roots in academia, with work experience in the US, Holland, Hungary, Japan, South Korea, Singapore, and Vietnam. ABN Asia is where academia and technology meet opportunity. With our cutting-edge solutions and competent software development services, we're helping businesses level up and take on the global scene. Our commitment: Faster. Better. More reliable. In most cases: Cheaper as well.

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